An Executive Porsche: For Fast Company, it's the Panamera

(MoneyWatch)  Porsche Cars North America is hardly alone as it faces a challenging luxury car market in 2009. In March, the German carmaker reported sales of 1,749 cars and SUVs, compared to 2,467 in the same month last year--a 29 percent drop.

For many decades, Porsche built only two-door sports cars, but the 2002 introduction of its Cayenne SUV (bemoaned as the end of the world by Porsche true believers) turned out to be a financial godsend for the company. The Cayenne is now Porsche's bestselling model--924 were sold to U.S. buyers in March, vs. 577 911s.

On April 19, Porsche unveiled its new four-door sedan, the Panamera, in Shanghai, China. That move makes sense in today's climate. According to Gary Fong, Porsche's product communications manager, "China is a very important emerging market for Porsche--everybody recognizes its economic strengths. For Chinese businessmen, their car is a sign they have made it, and most want a spacious back seat because they tend to be driven." Chauffeur-driven Porsches? Yes, indeed.

I did a piece recently on Bentley, which faces some of the same obstacles as Porsche--and also is looking to China for new buyers. "The growth markets are in Asia," I reported. "China is coming on strong, and could exceed even U.S. numbers in a few years." Bentley sold 500 cars in China in 2008.

The sleek, rounded Panamera, coming to the U.S. October 17, is going after such cars as the Audi A8, BMW 7-Series, Mercedes S-Class and CLK, and Maserati Quattroporte. It also presumably has the Fisker Karma in its sights, because Fong says a hybrid Panamera is coming (to complement next year's Cayenne hybrid). The company's goal is to sell 20,000 Panameras worldwide in the first full year of production.

The luxurious Panamera will have an MSRP of $89,800, and the two higher-priced models are the Panamera 4S ($93,800) and the Panamera Turbo ($132,600). Porsche claims the car will be fuel efficient, thanks to direct fuel injection, hybrid-type auto engine start/stop and a seven-speed gearbox. It can reach speeds of more than 180 mph, but no fuel economy numbers are yet available.

Porsche says that as many as 90 percent of Panamera's buyers will be new to the brand, but some are likely to be current or former 911 owners (probably with a top management or entrepreneurial postion) who wants an executive car with four seats. The company's demographics are 80 percent male, with a household income above $200,000.

Will the Panamera sell? Probably, since it's like a more practical 911 and closer to Porsche's heritage than the Cayenne. Fong points out that "Porsche will not be around if it doesn't figure out a way to expand its base. We've had critics say that anything other than a small sports car is diluting our brand image. But with the money we've made from the Cayenne we've been able to return to prototype racing, build the Carerra GT, the Cayenne S, a new 911 and a new Boxster. And we've been able to put money into new R&D, without which we'd probably cease to exist."

Here's a peek at the Panamera on the road: